United India growth dips to 5 pc on de-tariffing

PTINov 23, 2007, 05.34pm IST

KOLKATA: United India Insurance Co Ltd on Friday said the growth of the company during the current financial year upto October was down by five per cent on impact of de-tariffing in certain sectors since January this year.

"Our growth till October was lower by five per cent when the industry moved upwards by 10 per cent, the main reason being de-tariffing. However, it would stabilise and we will improve our performance during the coming months," UIICL chairman and managing director G Srinivasan said here today.

During the last year, the public sector insurer had grown by about seven per cent.

De-tariffing had brought down the premium rates in fire, engineering, workmen compensation and non-commercial motor.

"Despite odds, we are aiming to earn premium income of Rs 4,000 crore during the current fiscal as against Rs 3,500 crore earned during the previous year," he told PTI.

When asked about profitability prospects during the year, Srinivasan said, we hope to do better than last year's profit of Rs 520 crore.

Srinivasan said that the company has resources to grow business without any further capital but it is upto the government about divestment in government holding through public offer.